Technical Market Outlook:
The EUR/USD pair has bounced from the technical support located at the level of 1.1760, but the market conditions are now overbought, so a breakout lower might occur any time now. The nearest technical resistance is seen at the level of 1.1776 and 1.1790. The momentum is positive-to-neutral, so please keep an eye on the current market reaction at the level of 1.1760. The next target for bulls is the 50% Fibonacci retracement located at the level of 1.1809.
Weekly Pivot Points:
WR3 - 1.1930
WR2 - 1.1870
WR1 - 1.1843
Weekly Pivot - 1.1772
WS1 - 1.1740
WS2 - 1.1673
WS3 - 1.1643
Trading Outlook:
Despite the recent breakout form the Falling Wedge pattern, the rally did not last for long and the down cycle had been resumed. When this cycle scenario is confirmed by breakout above the level of 1.2000, the up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021). However, for now, the market is control by demand that might push the prices lower towards the key technical support located at 1.1599.
